On 5th August 2019, in a historic move, the Prime Minister Narendra Modi led NDA government announced its decision to withdraw Article 370 and Article 35A from the Indian Constitution, which has given special status to Jammu & Kashmir. Following the announcement by Home Minister Amit Shah, the state is now separated into two union territories. Now Jammu & Kashmir is a Union Territory with the legislature while Ladakh is a Union Territory without legislature.
What is Article 370?
Article 370 of Indian Constitution is a ‘Temporary Provision’ which gives special autonomous status to Jammu
and Kashmir. Under Part XXI is the constitution of India, which deals with “Temporary, Transactional and SpecialProvisions”, due to this the State of Jammu and Kashmir has been allow the
special status under Article 370. All the provisions of the constitution that
apply to other states are not applicable to Jammu and Kashmir.
Article 35A gave Jammu & Kashmir government the right to
decide who qualifies as a permanent resident of the state and only these
individuals were allowed to acquire or own land, can settle and seek government
jobs in Jammu & Kashmir region. It clearly means that Non-Kashmiri`s and
the rest of the country did not have the right to invest or buy a property or
even settle down in the state. However, withdrawing Article 35A would most
likely open the door for real estate investments in Jammu & Kashmir from
across the country.
What will happen to Jammu & Kashmir and Ladakh now?
After Kashmir’s special status is gone, people from anywhere
in India be able to buy a property and permanently settle in the state.
Yes, Jammu & Kashmir will be like any other Indian state
or union territory now where anyone can buy or invest in property. But results
of the move may take 6 months to a year to dry up and for people to decide is
Jammu & Kashmir is a safe address to invest capital. The best time to
invest in Jammu & Kashmir would be after the authorities make clear their
policies and rules, regarding buying and selling of properties.
We all know very well that Jammu & Kashmir depends
massively on the tourism sector. In October 2019, the investor’s summit being
planned in Jammu and Kashmir, It may create opportunities in the fields of healthcare,
pharmaceuticals, hospital, and agro-processing. Some experts believe that a change
in the administration could support the
economy and property market in Jammu & Kashmir. Guesswork often heads to
fake price rise and this has already been seen in some parts.
It is too early predict the actual result of abolishing
Article 35A on Kashmir’s real estate market. This is highly stressful area and
it will take a long time for all uncertainties to be resolved. The fact is that
the entire region of Jammu and Kashmir has been an area of controversy for
decades. As a result, it would interested in either party investing in waiting
mode. A lot will depend on how the political situational there is known.
There are enough people in the state who have been very
careful about investing in real estate as the militancy and political situation
is not very useful for the citizens of Jammu and Kashmir. I think would be
residents of the state who would prefer to take advantage of outsiders first
and probably not be afraid to invest immediately.
